SERENA Software Reports Strong First Quarter Results
Historical Revenue Up 65 Percent, Net Income Up 100 Percent
May 20, 1999 04:11 PM
BURLINGAME, Calif., May 20 /PRNewswire/ -- SERENA Software, Inc. SRNA today announced operating results for the first fiscal quarter ended April 30, 1999, reflecting strong growth across all sources of revenue.
Total revenue for the first quarter of fiscal 2000 was $14.2 million, an increase of 65 percent and 31 percent over the historical and pro forma results in same quarter of fiscal 1999. Net income and net income per diluted share for the first quarter of fiscal 2000, excluding amortization of intangible assets, increased 101 percent to $2.7 million and 57 percent to $0.11, compared to pro forma net income and net income per diluted share of $1.3 million and $0.07 in the same quarter a year ago. Including amortization of intangible assets, net income and net income per diluted share increased 100 percent to $2.2 million and 29 percent to $0.09, as compared to $1.1 million and $0.07 on a historical basis in the same quarter a year ago.
Software license revenue for the first quarter of fiscal 2000 increased to $6.9 million, up 59 percent and 36 percent over the historical and pro forma results in same quarter of fiscal 1999. Maintenance revenue for the first quarter of fiscal 2000 increased to $5.3 million, up 45 percent and 34 percent when compared to the historical and pro forma amounts from the same quarter a year ago, respectively. Operating income for the first quarter increased to $3.1 million, up 71 percent and 51 percent over the last year's corresponding quarter's historical and pro forma amounts.
The pro forma information and the amortization of intangible assets are a result of the September 25, 1998 acquisition of Optima Software Inc., which was the primary distributor of SERENA's flagship Change Man(R) product. The acquisition was accounted for as a purchase and the pro forma information reflects the acquisition as if it had occurred on February 1, 1997. Historical results include the operations of Optima Software, Inc. from the date of acquisition.
"These strong results across the board in our first full fiscal quarter as a public company are a great start to fiscal 2000," said Richard A. Doerr, chief executive officer. "We successfully completed the integration with Optima Software, we raised $59.3 million through our initial public offering in February of this year, which gives us access to sufficient capital to fund our strategic growth plans, and we're ahead of schedule on adding quality direct sales capacity as well."
In February 1999, the Company completed an initial public offering of 6 million shares of its common stock, of which 4 million shares were sold by SERENA resulting in $48.4 million to SERENA before expenses. In March 1999, the underwriters of the Company's initial public offering exercised their over-allotment option in full to purchase an additional 900,000 shares of common stock, resulting in an additional $10.9 million to SERENA.
Also in March, the Company delivered Change Transfer, an unprecedented time saving tool enabling IT managers to backup and restore critical data within their enterprise data systems. In April, SERENA announced its new desktop business unit, further extending its commitment to delivering solutions across multiple platforms. The Company also introduced FULL.CYCLE(TM) Enterprise strategy for end-to-end software change management and SERNET(TM) Enterprise, an innovative architecture enabling the first complete end-to-end software change management solution. SERENA also announced Detect+Resolve(TM) Mainframe, a product which automates the tracking and synchronization of changes made to mainframe software and data.
"We are very pleased to have successfully delivered on so many milestones during a very eventful and unprecedented quarter in SERENA's history," stated Doerr. "Our customers are clearly demanding the industrial strength automated software change management solutions that we are delivering. SERENA's products are installed in over 2,000 data centers, including 40 of the Fortune 50 companies such as Ford Motor, Exxon, General Electric and IBM. Their usage validates our technology and gives us opportunities to provide other products and services to very large enterprises."
About SERENA Software, Inc.
SERENA Software, Inc. is a global software and services company providing enterprise Software Change Management to manage and control change throughout the software application life cycle. SERENA is headquartered in Burlingame, California and maintains international offices in Canada, Germany and the United Kingdom. Additional information about SERENA Software is available on the Internet at www.serena.com.
This press release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, our reliance on our mainframe products for revenue, changes in revenue mix and seasonality, our ability to deliver our products on the desktop platform, dependence on revenues from our installed base, expansion of our professional services and international organizations and our ability to manage our growth. Information about potential factors which could affect the Company's financial results is included in the Company's Form 10-K filed with the SEC on April 22, 1999, and the prospectus dated February 11, 1999, filed with the SEC. SERENA assumes no obligation to update the forward-looking information contained in this press release.
Trademarks: Change Man, FULL.CYCLE, SERNET and Detect+Resolve are registered trademarks of SERENA Software, Inc. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners. (C) 1999 SERENA Software, Inc. All Rights Reserved.
SERENA Software, Inc. and Subsidiaries
Historical and Pro Forma Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended April 30,
1999 1998 1998
(Historical)(Historical)(Pro Forma)
Revenue:
Software licenses $6,909 $4,341 $5,097
Maintenance 5,294 3,652 3,953
Professional services 2,018 647 1,785
Total revenue 14,221 8,640 10,835
Cost of revenue:
Software licenses 689 251 421
Maintenance 1,335 892 892
Professional services 1,557 597 1,299
Total cost of revenue 3,581 1,740 2,612
Gross profit 10,640 6,900 8,223
Operating expenses:
Sales and marketing 4,263 2,380 2,897
Research and development 1,366 1,000 1,000
General and administrative 1,101 805 1,013
Stock-based compensation 315 906 906
Amortization of intangible assets 502 -- 353
Total operating expenses 7,547 5,091 6,169
Operating income 3,093 1,809 2,054
Interest & other income, net 835 151 149
Income before income taxes 3,928 1,960 2,203
Income taxes 1,734 862 1,215
Net income $2,194 $1,098 $988
Net income, excluding
intangible amortization $2,696 $1,098 $1,341
Net income per share:
Basic $0.09 $0.07 $0.05
Diluted $0.09 $0.07 $0.05
Diluted, excluding intangible amortization$0.11 $0.07 $0.07
Weighted average shares used
in per share calculations:
Basic 23,469 15,565 18,753
Diluted 24,891 16,252 19,440
SERENA Software, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except per share amounts)
Apr. 30, Jan. 31,
1999 1999
Assets
Current assets:
Cash and cash equivalents $61,139 $21,469
Short term investments 23,441 --
Accounts receivable, net 11,381 13,037
Due from principal stockholder -- 196
Deferred taxes 1,120 1,120
Prepaid expenses and other current assets 870 565
Total current assets 97,951 36,387
Property and equipment, net 1,826 1,864
Due from principal stockholder -- 421
Intangible assets, net 20,430 20,933
Other assets 92 73
Total Assets $120,299 $59,678
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $143 $401
Income taxes payable 399 1,499
Accrued expenses 6,794 7,143
Deferred revenue 12,955 10,839
Total current liabilities 20,291 19,882
Deferred revenue, net of current portion 1,358 1,533
Deferred taxes 158 158
Total liabilities 21,807 21,573
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value; 60,000,000
shares authorized, 25,301,126 and 20,401,126
shares issued and outstanding at April 30
and January 31, 1999, respectively 25 20
Additional paid-in capital 86,404 28,518
Deferred stock-based compensation (1,013) (1,339)
Notes receivable from stockholders (3,280) (3,233)
Accumulated other comprehensive losses (3) (26)
Retained earnings 16,359 14,165
Total stockholders' equity 98,492 38,105
Total Liabilities and Stockholders' Equity $120,299 $59,678
SOURCE SERENA Software, Inc. |
